Mathematics

Sensitivity analysis of multisector optimal economic dynamics

Article Abstract:

The sensitivity of multisector Ramsey-type models of optimal economic dynamics is analyzed. Using a methodology called lattice programming and assuming general conditions of monotonicity and supermodularity, it is determined that the value function is monotone and supermodular. It is concluded that while the monotonicity and supermodularity are natural extensions of the one-dimensional case when the basis used are endogenous, they are restrictive when based on exogenous factors.

Product differentiation and oligopoly in international markets: the case of the U.S. automobile industry

Article Abstract:

A model of the US automobile industry is constructed and estimated. A discrete choice model is employed for the demand side using statistics from the Consumer Expenditure Survey. The automobile industry is an oligopolistic model with product differentiation for the supply side. The effects of the voluntary export restraint and the exchange rate pass-through are investigated upon obtaining estimation results.

Domestic and international macroeconomic effects of German economic and monetary union

Article Abstract:

The effect of German economic and monetary union on international economic relations is analyzed. Positive growth effects of German international trade were measured against the negative effects of inflation and unstable foreign exchange rates. Findings showed that the positive effects outweighed the negative effects. Thus, the process of German unification boosted international economic conditions.